Want less than Minimum but not Multiple IRA”s?

L1: Want less than Minimum but not Multiple IRA”s?1) Lowest IRA value in last 6 months is $1,250,000
2) Age 55
3) Only want $35,000 per year for 5 years. There is no possibility that I would want to change this prior to the 5 years.
4) I really do not want multiple IRA”s.
5) I am researching correctly that the very minimum I MUST take would be $42,229.73 and THAT would have to be recalculated every year?
6) And if that is correct, and I wanted to go with the annuitization method (for a fixed yearly amount), I could use a “reasonable interest rate assumption” of ANY % under 120 MTR?2008-02-26 08:42, By: SEPP Dummy, IP: [24.172.244.211]

L2: Want less than Minimum but not Multiple IRA”s?Why are you insistent on complicating your situation ? I suggest that you will be infinitely better served by segregating just enough of your IRA into a separate account for your SEPP 72-T to provide exactly what you want.2008-02-26 09:14, By: dlzallestaxes, IP: [141.151.95.224]

L2: Want less than Minimum but not Multiple IRA”s?Dear S D,
DLZ is right. Stop being difficult.Multiple IRAs can be a blessing. Your personal crystal ball may not be working as well as you think! Make it into (at least) 2 IRA”s first (they can even be with same custodian but have Diff Acct#s) and use the NEW one that was just portioned off (after using the reverse calculator on this site to compute correct beginning balance to get a $35k dist per year using the interest rate that will apply when your first payment is issued (either of preceding two months). Read the earlier post today about the one that wasn”t split in time, and don”t make that kind of mistake. Always use the NEW account with the specific beginning balance from the direct transfer as the one in your calcs, so it doesn”t get fouled up. If multiple IRA”s with same custodian, make sure the custodian knows the specific IRA that makes up your SEPP plan, so there is no commingling or confusion. I used AMORTIZATION with NO RECALC for my first 72t on Schwab IRA, and created the amount using this calculator, then transferred my figures and gave them my payment specifics on the form from this website. (I could make the one time change to lower RMD formula if I needed to lower the payment before the five years run their course.) Then 18 mos later used my 2nd IRA with VANGUARD to fund a 2nd 72t to make house payments on second home we bought in retirement at age 57. I had to use their 72t form to request the SEPP, but I used figures I got from here, and they matched the ones that their form generated. I still have a 3rd IRA with another custodian, just for emergency withdrawals, or for after 59 1/2 no penalty withdrawals if I need more $$ than the 72(t) s are paying me till they run their 5 year course. Do not opt for annual recalculation. It just confuses your life, and leaves you subject to missing the recalc. IF you know you need $35k, stick to that figure for the 5 years. By using highest interest rate that is allowed for period of first payment, you can isolate the smallest amount into the SEPP IRA, and leave the rest in other IRA(s). Remember that the age to use in the cals is the age you will attain in 2008. A quick look at reverse calculator for age 55 and $35K, using JAN rate of 4.31% (this rate can be used for FEB or MARCH first payments.. I think it is too late to use the DEC higher rate, since FEB is last month you can use it). The calculator said (using Amortization method–for the highest payout calc) you need starting balance of $579,179.30 in the SEPP IRA. If you are really 56 in 2008, it would be $570,164.70 as (Amort.) starting balance. That leaves about $700K that can be kept separate from the SEPP plan. Good luck. KEN2008-02-26 12:43, By: Ken, IP: [151.199.40.175]